GREAT FALLS — A stark division among Montana conservatives was evident at the Montana GOP event in Great Falls, marked by four empty chairs meant for a debate on property taxes. Only two seats were occupied by Sen. Greg Hertz of Polson and Rep. Terry Falk from Kalispell, as they criticized the recent property tax package. State GOP Chair Art Wittich, moderating, noted the absence of supporters for the legislation, questioning if the changes align with Republican values.
“This property tax bill that passed the session has been highly debated,” stated Wittich. He invited nine Montana senators who supported Senate Bill 542, now marginalized by the state GOP, but none attended. The bill includes a $90 million tax rebate, a restructuring of property tax rates, and a solution for the “Billings problem,” allowing the state to reimburse revenue losses from tax cuts. With the 2027 Legislative session approaching and a pending lawsuit challenging the bill’s constitutionality, the controversy intensifies.
Hertz, a plaintiff in the lawsuit, criticized the bill’s rapid changes during the 2025 session, accusing legislators of not knowing its contents. “You don’t even know what was in your damn bill that you voted for, and that’s the problem,” he said in response to audience questions. The lawsuit claims the bill was misleading, focusing on the shifting language as the session ended.
‘You’re not welcome here’
Rep. Llew Jones expressed concerns about fairness in the debate, stating they were asked to pay to participate. “They just booted nine folks out and effectively said, ‘You’re not welcome here,’” Jones remarked. He accused the state GOP of censoring rural Republicans, emphasizing the lack of welcome for those not aligning with urban party leaders.
Sen. Josh Kassmier, one of the ousted senators, called for a special session to address the bill if the party continues to attack it. Kassmier, who supported the amended bill, urged those with better solutions to present their plans, highlighting the costliness of special sessions.
Falk and Hertz suggested changes to SB 542, including modifying the homestead exemption, unifying property tax rates, and exploring revenue sources like the general fund. Discussions also touched on Tax Increment Funding and potential sales tax, which Hertz suggested should offset property taxes by a significant percentage.
‘Someone else in your tax jurisdiction’
The debate also focused on how SB 542 shifted tax burdens. Gov. Greg Gianforte’s supported legislation aimed to alleviate taxes for 80% of homeowners, saving an average of $500, but shifted costs to others in the same tax jurisdiction, impacting local business owners.
Jones noted that commercial property taxes rose slower than residential ones. Before SB 542, residential taxpayers bore 59% of the burden, up from 38% in 1994. He defended the balance attempt, noting regional disparities in property value increases and taxation.
Local government spending, highlighted by Senate Bill 117, was criticized for inflating budgets, with examples like Helena’s school levy and Missoula’s amenities cited. Hertz emphasized voter choice in spending priorities, questioning the necessity of expansive local government services.
Energy companies’ political and economic influence was also a topic, with consensus on the state’s economic shift from resource extraction to tourism. “We do not have a natural resource economy,” Falk stated, underscoring the need for improved revenue and budgeting strategies. As the economy pivots to tourism, Jones described the state’s offering as a “scenery mine,” capitalizing on natural beauty.
